Tuesday, 17 September 2013

The Mobile War: Is Apple New iphone 5C too expensive? By Alex Dumortier, 10th September 2013


This article is mainly about the Apple Company in regarding their latest Iphone 5C, which is the cheaper version of iphone 5S that was release a few days ago. In 10th September 2013, Alex Dumortier reported that it is the very first time Apple making a “duo” launches in the iphone history by releasing a low cost iPhone. Due to this, the author stated that Apple Company does not want to compete on price to regain what’s lost in its market share but still committed to defend its premium position, even though their share market has drop. The share market in the world of smartphone shows that Apple market has drop from 19% to 14% a year ago, whereas Samsung’s on the other hand has increased from 30% to 32% in the same year itself.

The price of iphone 5C model with or without contracts or data plan will be sold at a lesser price comparing to 5S model but much more expensive if we tend to compare it with devices from China markets as they are part of the market share as well. However, even at $549 for the base model of iphone 5C, it will still remain a luxury item in China and other emerging markets. The stockholders on the other hand will definitely be disappointed if they were hoping for even lower entry point, which could cause Apple to offer a more competitive under emerging markets.

The author reported also reported that it is undeniable that Apple not only good but successful in creating and markets its devices that authorize finest pricing over its competitors because of its detailed and perfect design of their product. Yet, the marketing strategy of Apple products will tend to get harder to maintain in future as the other competitors constantly adapt themselves with the new technology as well as improving their product at its best. Apple needs to seriously get more insistent on its price despite of just competing on the design of its product.

In my opinion, in regarding the new release of iphone 5C, the author did mention that iphone doesn’t want to regain what lost it its share market but just committed to defense its premium position, even if they are clearly understand that their share market in the world of smartphones has drop.  In my opinion, they does not want to regain what is lost is not because that they does not care but it might also be part of their marketing strategy in regaining back the share that they had lost to Samsung. It could be that, they know people would still buy their products because of the quality instead just looking at the price. People are interested with Apple technologies because iphone tend to make less problem compared to other smartphones, like Samsung and HTC. Apple technologies run smoothly and tend to have very minor lags with no slowdowns, Sam (2013) acknowledge this by posting in Yahoo answers discussion forum in regard of smartphones. So, people will definitely still go for iphone as their preference smartphone and anticipating the product. It is important for the Apple Company to still maintaining its quality not only because to seek more potential buyer but also to build up Apple’s reputation since the death of Steve Jobb. This is mainly because when Steve Jobb passed away, there are numbers of people who assumed that the next generations of iphone model would not be as good as the previous model from the creation of the original founder itself, which is Steve Jobb himself.

In regarding the price of iphone 5C, yes, I still think that it is expensive even it is said to be a cheaper version to their other iphone model that was release on the same date as iphone 5C. It is said to be low cost iphone model is not because of the technology in the 5C are not good or what not but, the Apple company replaced the outlook’s material to plastic to lower down the cost instead of maintaining its classy and metal outlook material besides removing the finger print specification on it. Well, I think that even they are using plastic materials; people would still want to buy it because of it comes with several colors that will attracts numbers of young buyers. Apple Company created a low cost model of iphone and at the same time designing it at its best, which make the iphone 5C looks attractive but still keeping the its Apple’s latest technologies. Some people might think that iphone 5S are too expensive, so they might as well purchased iphone 5C instead since both of the technologies, apps and features used are more or less the same.  In conclusion, iphone 5C might still be expensive but to most of people will still find it worth it because of its premium apple’s technologies in used.







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